The Texas Health and Human Services Commission (HHSC), on behalf of the Department of Aging and Disability Services (DADS), proposes amendments to §97.2, concerning Definitions; and §97.23, concerning Change of Ownership, in Chapter 97, Licensing Standards for Home and Community Support Services Agencies.

BACKGROUND AND PURPOSE

The proposed amendments revise requirements related to change of ownership of a license holder for a home and community support services agency (HCSSA). Under the proposed amended rules, a license holder will not be required to apply for a new license if the ownership structure of the license holder changes but the license holder is the same legal entity, as evidenced by having the same federal tax identification number. Changes in ownership structure must be reported to DADS under other existing rules. The proposed amendments add definitions for terms related to a change of ownership and ownership interests. The proposed amendments also allow for DADS to conduct a desk review instead of an on-site health survey if the applicant for a license resulting from a change of ownership meets certain requirements.

SECTION-BY-SECTION SUMMARY

The proposed amendment to §97.2 adds definitions for "change of ownership," "direct ownership interest," "disclosable interest," "indirect ownership interest," and "license holder." These terms are used in the proposed amendments to §97.23, setting forth procedures for a change of ownership. The amendment also deletes the definition of "person with disclosable interest" because it is unnecessary if the term "disclosable interest" is defined. Additional editorial changes are proposed for clarity and consistency.

The proposed amendment to §97.23 states that a license may not be transferred; the former license holder's license becomes invalid on the date of the change of ownership, and the new license holder must obtain a license in accordance with §97.13. The proposed amendment states that DADS conducts an on-site health inspection before issuing a license as a result of a change of ownership, except DADS may conduct a desk review instead of an on-site health inspection if: less than 50 percent of the direct or indirect ownership interest has changed, or every owner with a disclosable interest in the new license holder had a disclosable interest in the former license holder. The proposed amendment also clarifies that DADS may conduct an on-site Life Safety Code inspection before issuing a license as a result of a change of ownership.

FISCAL NOTE

David Cook, Deputy Chief Financial Officer, has determined that, for the first five years the proposed amendments are in effect, enforcing or administering the amendments does not have foreseeable implications relating to costs or revenues of state or local governments.

SMALL BUSINESS AND MICRO-BUSINESS IMPACT ANALYSIS

DADS has determined that the proposed amendments will not have an adverse economic effect on small businesses or micro-businesses, because the proposal does not impose requirements that result in a cost to HCSSAs.

PUBLIC BENEFIT AND COSTS

Mary T. Henderson, DADS Associate Commissioner for Regulatory Services, has determined that, for each year of the first five years the amendments are in effect, the public benefit expected as a result of enforcing the amendments is a reduction in paperwork and fewer on-site surveys associated with changes of ownership that are unlikely to affect services provided by a license holder.

Mr. Cook anticipates that there will not be an economic cost to persons who are required to comply with the amendments. The amendments will not affect a local economy.

TAKINGS IMPACT ASSESSMENT

DADS has determined that this proposal does not restrict or limit an owner's right to his or her property that would otherwise exist in the absence of government action and, therefore, does not constitute a taking under Texas Government Code, §2007.043.

PUBLIC COMMENT

Questions about the content of this proposal may be directed to Barbara Blankenship at (512) 438-5502 in DADS Regulatory Services. Written comments on the proposal may be submitted to Barbie Blankenship at 701 West 51st Street, Austin, Texas, 78751, Mail Code E-370; or via email to barbara.blankenship@dads.state.tx.us. The last day to submit comments falls on a Sunday; therefore, comments must be: (1) postmarked or shipped before the last day of the comment period; (2) hand-delivered to DADS before 5:00 p.m. on DADS last state working day of the comment period; or (3) faxed or emailed by midnight on the last day of the comment period. When faxing or emailing comments, please indicate "Comments on Proposed Rule 16R11" in the subject line.

STATUTORY AUTHORITY

The amendment is proposed under Texas Government Code, §531.0055, which provides that the HHSC executive commissioner shall adopt rules for the operation and provision of services by the health and human services agencies, including DADS, and Texas Health and Safety Code, Chapter 142, which authorizes the executive commissioner to adopt rules regarding the licensure of a home and community support services agency.

The amendment implements Texas Government Code, §531.0055, and Texas Health and Safety Code, Chapter 142.